Hammack: Fed Rate Policy Not Restrictive Enough to Tame Inflation

Cleveland Federal Reserve President Beth Hammack warned that the current interest rate policy is not yet restrictive enough to bring inflation back down to its 2% target. Speaking at a conference in New York, she emphasized the need for patience and data-driven decision-making.

Hammack noted that despite progress, price pressures remain elevated in key sectors, and policy needs to be sufficiently tight to ensure a sustained return to target. The current policy stance is 'not yet restrictive enough' to guarantee inflation will continue to fall, she said.

The comments come as investors debate the timing of potential rate cuts. Hammack's remarks suggest a more cautious approach, prioritizing inflation control over supporting economic growth.